Risk Management • Process Execution Failure in operational and business processes can jeopardize our Company’s competitiveness. In order to minimize process risk, we seek to standardize our processes throughout its entire organization by adopting international Quality Management standards within the framework of ISO9001. Guided by this Quality Management System, we are able to consistently deliver quality in our products and services with an impeccable level of service. • Business Continuity For the same reason as explained above, Megachem has implemented a Business Continuity Management (“BCM”) program which aims to ensure continuity of our key functions and processes, in part and/or in whole in the event of any unforeseen disruptions, in order to fulfill our obligations and to protect our reputation and branding. The BCM program involves the integration of management, people, system and facilities. The framework covers : – conducting context analysis and understanding needs and expectation of interested parties such as our customers, regulators, government agencies etc; – conducting risk assessment and business impact analysis periodically; – evaluating recovery strategies to be implemented; and – documenting and communicating detailed plans and measures to recover, restore and return business processes to pre-incident level to all interested parties. Megachem is proud to achieve ISO22301 certification for our BCM program. e. LEGAL RISK • Business Ethics Compliance with rules and regulations is set as a fundamental principle with which we conduct our business. Through staff induction program and continuous education, this principle is being reinforced to ensure that we continue to comply with all relevant rules and regulations. Anti-graft laws are increasingly being enacted globally such as the US Foreign Corrupt Practices Act and UK Anti-Bribery Act. Recognizing the adverse impact of non-compliance on our Company’s reputation and the potential loss of business, Megachem puts integrity at the core of our corporate value system. The business conducts of all employees of the Group are guided by a Business Ethics Guide which provides guidance on areas such as anti-bribery, corruption, conflict of interest, intellectual property protection, insider trading and fraud. These Codes of Ethics are strictly binding for all employees in the respective countries in which we operate. Trainings are provided during staff induction program and refresher trainings are also provided. This Code demonstrates our commitment to integrity in the workplace and in the way we conduct our business. • Industry Specific Regulations Various government agencies also imposed industry-specific regulations. In this area we collaborate closely with these agencies on educational programs and exercises to keep ourselves up to speed with changes in their rules and regulations. (For more information, please refer to Sustainability: Health, Safety and Environment section.) • Stock Exchange Listing Rules Guided by our Catalist Sponsor, listing rules are constantly being observed and followed. All announcements are perused by our Catalist Sponsor before they are released. Our Catalist Sponsor is also frequently being engaged in board discussion on matters relating to listing rules compliance. f. CLIMATE RISK Failing to address climate risks can have financial, operational, and reputational consequences for businesses. Megachem is committed to putting in place an effective climate risk management to ensure business continuity and mitigate financial losses. 47 ANNUAL REPORT 2024
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